Question

You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of T T + Shares 1 3,700,000 $66 $84 10,000,000 28 42 29,000,000 19 30 a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places. % b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.

Answer 1

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1 Ale w Q v 1 = ENG 00:48 09-02-2020 33 G1148 X fix A B 1128 1129 PRICE WEIGHTED INDEX AT t=0, THE VALUE OF INDEX = (66 + 28 + 19)/3 = AT t=1, THE VALUE OF INDEX = (84 +42 +30)/3 = % CHANGE IN INDEX = (52-37.67)/37.67= 37.67 52 38.05% 1130 1131 a 1132 1133 1134 1135 1136 b 1137 1138 1139 MARKET VALUE WEIGHTED INDEX STOCK 84 QO 3700000 10000000 29000000 Q1 3700000 10000000 29000000 42 PO*Qo P1*Q1 244200000 310800000 280000000 420000000 551000000 870000000 1075200000 1600800000 1140 30 % CHANGE IN INDEX = (1600800000/1075200000) -1 = 48.88% (P101/POQO - 1] 1141 1142 1143 1144 1145 1146 1147 1148 1149 1150 1151 ... UTILITY, SHARPE, beta convexity DGM beta port future INDEX INTL CAP BUD SANDRINE LEASING PV, FV, ANNUITY DIR right clean YIELD bond portf ...